This bug was fixed in the package xorg - 1:7.5+1ubuntu7
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xorg (1:7.5+1ubuntu7) lucid; urgency=low
* debian/local/Failsafe/failsafeXServer:
+ Actually produce xorg.conf.failsafe with the detected driver.
Important for failures while running in KMS mode.
(LP: #496773)
+ Force overwrite of existing xorg.conf.failsafe. Since above
change produces different xorg.conf.failsafe's depending on
what driver was selected, we must force it to regen each time.
(LP: #480747)
-- Bryce Harrington <br...@ubuntu.com> Mon, 22 Feb 2010 22:38:22 -0800
** Changed in: xorg (Ubuntu)
Status: Triaged => Fix Released
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Failsafe X doesn't always overwrite /etc/X11/xorg.conf.failsafe
https://bugs.launchpad.net/bugs/480747
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